AUSTRALIAN terror supporters will have their unemployment benefits and other welfare payments cut off.

In a significant crackdown on homegrown extremists, Prime Minister Tony Abbott says new legislation would allow the Department of Human Services to cancel benefits to those assessed as a serious threat to national security.

“The last thing we want is terror tourism on the taxpayer,” he said on Saturday afternoon.

“These new measures will ensure Australian taxpayers are not financing people known to be members of, or working with, terrorist organisations”.

Mr Abbott said under current arrangements, welfare payments can only be suspended or cancelled for those who don’t meet social security eligibility rules.

That includes failing to fulfil participation, residence or portability qualifications.

The government has already cut benefits to those abroad, but not extremists in Australia who continue to meet eligibility requirements.

“If there is one Australian overseas engaged with a terrorist organisation on social security, that is one too many,” Mr Abbott said.

The new power to cut people off from social security will be given to the Minister for Human Services.

“The power will be used sparingly and will be used with discretion, but it will be used rigorously against anyone who has gone overseas to be involved with a terrorist group,” he said.

He said legislation would be introduced to ensure benefits can be promptly stopped for people identified by national security agencies as involved in extremist conduct.

“The new legislation will enable the Department of Human Services to cancel a person’s welfare payment if it receives advice that a person has been assessed as a serious threat to Australia’s national security,” he said in the statement.

Advice will be provided by the Attorney-General, Minister for Foreign Affairs or Minister for Immigration and Border Protection.

“Ministers will exercise discretion and take into account all relevant factors including advice from national security agencies, before requesting cancellation of welfare payments,” he said.

Mr Abbott said the government would also ensure relevant agencies worked more closely together to share information on issues of national security where that relates to cancelling welfare to those regarded as posing a threat.

“Australians travelling to Syria, Iraq, and other conflict zones to engage in, or support, terrorist activities are committing criminal offences,” he said.

Mr Abbott said Australia’s welfare system already allowed payments to be suspended or cancelled for those who don’t meet their obligations.

“This measure is based on the same principle. It is designed to make sure taxpayers’ money is not being used to undermine Australia’s national security,” he said.

News.com.au's Privacy Policy includes important information about our collection, use and disclosure of your personal information (including to provide you with targeted content and advertising based on your online activities). It explains that if you do not provide us with information we have requested from you, we may not be able to provide you with the goods and services you require. It also explains how you can access or seek correction of your personal information, how you can complain about a breach of the Australian Privacy Principles and how we will deal with a complaint of that nature.